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Noncash Income, Equivalence Scales, and the Measurement of Economic Well-Being

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  • Radner, Daniel B
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    Abstract

    Little attention has been paid to the importance of consistency between the specifications of the income and the equivalence scales used in measuring economic well-being when noncash income is included in the definition of income. This article finds that inconsistency between the income and needs sides of a comparison can be important when some types of noncash income are included. An upward bias in the measured economic status of the aged when Medicare is included in income and an ordinary equivalence scale is used is presented as an example of the important effects of this consistency problem. Copyright 1997 by The International Association for Research in Income and Wealth.

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    Bibliographic Info

    Article provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.

    Volume (Year): 43 (1997)
    Issue (Month): 1 (March)
    Pages: 71-88

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    Handle: RePEc:bla:revinw:v:43:y:1997:i:1:p:71-88

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    Cited by:
    1. Paulus, Alari & Sutherland, Holly & Tsakloglou, Panos, 2009. "The distributional impact of in kind public benefits in European countries," EUROMOD Working Papers EM10/09, EUROMOD at the Institute for Social and Economic Research.
    2. Callan, Tim & Keane, Claire, 2009. "Non-Cash Benefits and the Distribution of Economic Welfare," IZA Discussion Papers 3954, Institute for the Study of Labor (IZA).
    3. Gerlinde Verbist & Michael Föster & Vaalavou, M., 2013. "GINI DP 74: The Impact of Publicly Provided Services on the Distribution of Resources: Review of New Results and Methods," GINI Discussion Papers 74, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Rolf Aaberge & Manudeep Bhuller & Audun Langørgen & Magne Mogstad, 2010. "The distributional impact of public services when needs differ," Discussion Papers 621, Research Department of Statistics Norway.
    5. Verbist, G. (Gerlinde) & Matsaganis, M. (Manos), 2012. "GINI DP 53: The Redistributive Capacity of Services in the EU," GINI Discussion Papers 53, AIAS, Amsterdam Institute for Advanced Labour Studies.
    6. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2007. "Distributional Effects of Public Education Transfers in Seven European Countries," Papers WP207, Economic and Social Research Institute (ESRI).
    7. Christos Koutsampelas & Panos Tsakloglou, 2012. "The distribution of full income in Greece," University of Cyprus Working Papers in Economics 03-2012, University of Cyprus Department of Economics.
    8. Ron Crawford & Grant Johnston, 2004. "Household incomes in New Zealand: The impact of the market, taxes and government spending, 1987/88–1997/98," Treasury Working Paper Series 04/20, New Zealand Treasury.

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